- Deal with industry leader is BVT's first commercial partnership and enables first EU revenues
- Extends BVT solution into insect control for first time
- BVT will continue to pursue registration of its CR-7 throughout Europe
Mississauga, Ontario and Sacramento, California--(Newsfile Corp. - October 14, 2021) - Bee Vectoring Technologies International Inc. (CSE: BEE) (OTCQB: BEVVF) (CVE: BEE) (the "Company" or "BVT") today announced its first commercial agreement with BIOGARD, a division of CBC (Europe) S.r.l., one of the leading bioprotectant companies in Europe. Through the agreement, BVT will have exclusive access to BIOGARD's biological insecticide Beauveria bassiana ATCC 74040 for bee vectoring uses throughout the European Union and Switzerland.
"This first commercial agreement with a partner in the EU represents a major step in BVT's growth," said Michael Collinson, Chairman of BVT. "It is the most significant global milestone for BVT since acquiring EPA registration in the US in 2019. The agreement will enable BVT to operate in the EU through the development and registration of a bee-vectoring product extension of an already-accepted biological active substance, rather than awaiting approval of a new active substance submission - a process that can take up to 3 years. It is also a clear indication that the industry has begun to recognize the value of our bee vectoring system as an effective way to deliver crop protection."
Through the agreement, BVT will develop a biological insecticide solution for delivery to crops through BVT's proprietary bee vectoring platform using BIOGARD's active substance registration. This could be either stacked alongside BVT's own biological fungicide, Clonostachys rosea strain CR-7 (CR-7), for a complete fungicidal plus insecticidal solution for certain crops, or used as a standalone when some diseases are not present. Bee vectoring uses up to 98% less product per crop hectare compared to traditional application methods since the active ingredient is delivered directly to crop flowers with no waste. The agreement also includes a long-term arrangement for BIOGARD to supply the active substance to BVT.
"BVT is a true innovator in sustainable farming practices and natural pest control," said Vittorio Veronelli, CEO of CBC (Europe) S.r.l.. "BVT and BIOGARD are perfectly aligned in our missions to drive sustainable farming practices, and BIOGARD's microbiological insecticide will work well in bee vectoring. This is a win-win for the European marketplace."
BIOGARD has a 30-year track record offering biological control products. The company was formed by a merger between CBC (Europe) S.r.l. and Intrachem Bio Italy, and is a recognized leader in the industry. BIOGARD's microbiological insecticide, Beauveria bassiana ATCC 74040, has EU registration and has been used for 10 years through a foliar spray to control insects such as thrips, whiteflies and aphids. These insects cause damage to multiple crops including strawberries and peppers, which are among the priority target uses for BVT's solution.
"This agreement represents two important firsts for BVT," said Ashish Malik, CEO of BVT. "It propels BVT into the EU, allowing us to generate first revenue from this region and validate our technology with growers while we work to complete the registration process for the approval of CR-7. It is also our first product expansion by in-licensing a third-party biological for use in BVT's bee vectoring system. This deal validates that BVT technology can be used to deliver multiple biocontrol agents and extends our solution beyond disease control to now include insect control as well. This is an exciting opportunity for BVT to add value to growers worldwide, help them implement more sustainable practices - and increase BVT's share of wallet."
The insecticide market in Europe is estimated at US $2 billion.(1) Europe is now the world's second-largest market for bioprotectants,(2) due to growing consumer demand for organic foods and pressure from EU regulators on farmers to adopt more sustainable agricultural practices. BVT's initial priority will be to target greenhouse production of crops such as strawberry and peppers, which represent 200,00 hectares(3) (~500,000 acres) in Europe, including 100,000 acres grown in covered environments.(4)
The Company's strategy has three major elements: continued commercialization in the US; global expansion; and product portfolio expansion. This partnership represents the first milestone in the important third element of the strategy.
"This agreement validates the promise of BVT's in-licensing trials and evaluations, and shows we are executing our strategy," said Mr. Malik. "There will be more in-licensing agreements to come as we wrap initial trials of other third-party products. The relationships and trials we have been investing in over the last several years are starting to materialize."
(1) Source: BVT estimate from aggregation of multiple sources
(2) Source: MarketsandMarkets
(3) (4) Source: BVT estimate
BVT, an agriculture technology company, is a market disruptor with a significant global market opportunity in the $240 billion crop protection and fertilizer market. BVT has pioneered a natural precision agriculture system that replaces chemical pesticides and wasteful plant protection product spray applications by delivering biological pesticide alternatives to crops using commercially grown bees. BVT's award-winning technology, precision vectoring, is completely harmless to bees and allows minute amounts of naturally-derived pesticides (called biologicals) to be delivered directly to blooms, providing improved crop protection and yield results than traditional chemical pesticides - and improving the health of the soil, the microbiome and the environment. Currently, BVT has over 65 granted patents, over 35 patents pending in all major agricultural countries worldwide, and has US EPA registration of its Vectorite™ with CR-7 (EPA Registration No. 90641-2) for sale as a registered biological fungicide for use on the labeled crops.
Ashish Malik, President & CEO
Babak Pedram, Investor Relations
Virtus Advisory Group
The CSE has neither approved nor disapproved the contents of this press release. The CSE does not accept responsibility for the adequacy or accuracy of this release. Certain statements contained in this press release constitute "forward-looking information" as such term is defined in applicable Canadian securities legislation. The words "may", "would", "could", "should", "potential", "will", "seek", "intend", "plan", "anticipate", "believe", "estimate", "expect" and similar expressions as they relate to the Company, "annual revenue potential", are intended to identify forward-looking information. All statements other than statements of historical fact may be forward-looking information. Such statements reflect the Company's current views and intentions with respect to future events, and current information available to the Company, and are subject to certain risks, uncertainties and assumptions, including: planted acres, selling price of competitive chemical pesticides and the US to Canadian dollar exchange rate. Material factors or assumptions were applied in providing forward-looking information. Many factors could cause the actual results, performance or achievements that may be expressed or implied by such forward-looking information to vary from those described herein should one or more of these risks or uncertainties materialize. These factors include changes in law, competition, litigation, the ability to implement business strategies and pursue business opportunities, state of the capital markets, the availability of funds and resources to pursue operations, new technologies, the ability to protect intellectual property rights, the ability to obtain patent protection for products, third-party intellectual property infringement claims, regulatory changes affecting products, failing research and development activities, the ability to reach and sustain profitability, dependence on business and technical experts, the ability to effectively manage business operations and growth, issuance of debt, dilution of existing securities, volatility of publicly traded securities, potential conflicts of interest, unlikelihood of dividend payments, the potential costs stemming from defending third-party intellectual property infringement claims, the ability to secure relationships with manufacturers and purchasers, as well as general economic, market and business conditions, as well as those risk factors discussed or referred to in the Company's Filing Statement dated August 14,2020, filed with the CSE and securities regulatory authorities in certain provinces of Canada and available at www.sedar.com. Should any factor affect the Company in an unexpected manner, or should assumptions underlying the forward-looking information prove incorrect, the actual results or events may differ materially from the results or events predicted. Any such forward-looking information is expressly qualified in its entirety by this cautionary statement. Moreover, the Company does not assume responsibility for the accuracy or completeness of such forward-looking information. The forward-looking information included in this press release is made as of the date of this press release and the Company undertakes no obligation to publicly update or revise any forward-looking information, other than as required by applicable law. All figures are in Canadian dollars.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/99539